1. The Mathematics of Buying

2. Trade Discounts

3.  Often given to businesses or individuals who buy an item for resale.  Seller given the price of the item as its LIST price.  NET cost (or Net Price) is the amount paid by the buyer

4. Finding the NET COST  Net Cost = List Price – Trade Discount  EX: A wine refrigerator has a list price of $589.99 and a trade discount of 35%. Find the net cost.  This is an example of a Single Discount

5. SERIES DISCOUNTS Sometimes, 2 or more discounts are combined into a series (or chain) discount. One way to find a series discount is to calculate each discount separately: Calculate the 1 st discount, subtract from List Price Then calculate the 2 nd discount using the new total.

6. Series Discount Example: A 12-place setting of stainless steel flatware is list priced at $249.99. If a series discount of 10/15 is offered, what is the net cost after the series discount is taken?

7. Finding a Series Discount using Complements  To find the complement of a %, subtract it from 100%. Instead of the % discount, it now represents the % cost.  NOTE: table of some common complements is on p. 267

8.  A supplier offers a series discount of 25/15 on a waffle iron. If the list price of the iron is $135, use the complements of each of the single discounts to find (a) the net cost and (b) the amount of discount.  A 22.2 cubic-ft bottom freezer refrigerator is list priced at $2249.99. What is the net cost after a series discount of 15/20/5?

9. Net Cost Equivalent Table  See table on P. 268  This gives us ONE number to multiply by the list price to find Net Cost!

10.  Use the table to find the net cost equivalents for each of the following series discounts:  A) 30/5B) 10/40  C) 20/15/10 D) 10/5/5  If the list price is $2354.95 and the series discount is 10/5/5, what is the net cost?